We use mutual funds and exchange traded funds to gain exposure to markets and asset classes, when we are not able to directly trade in the market or security.This is not only for gaining diversification but also efficiently manage risk without incurring foreign taxes.
We also gain exposure to commodities and global currencies with this method.
We also use no-load and low cost highly rated mutual funds for the 403(B) and 457 Accounts. These accounts operate under the restrictions that individual securities or even ETFs cannot be allocated to such accounts